Alcatel and Fujitsu Bring 'Beyond 3G' Solution to Europe

Paris and Tokyo, October 21, 2004

Alcatel (Paris: CGEP.PA and NYSE: ALA) and Fujitsu Limited today announced the joint launch and operation of a live HSDPA⁽¹⁾ (High-Speed Downlink Packet Access) demonstration system in France. This system, which was developed by Fujitsu based on technical specifications provided by NTT DoCoMo, Inc., is located at Alcatel's 3G Reality Centre (3GRC) in Vélizy, France.

By introducing greater capacity and higher data speeds of up to 14Mbps into existing W-CDMA networks, HSDPA promises enhanced quality of service (QoS) and cost/performance advantages for operators and subscribers alike.

This achievement reinforces Alcatel's and Fujitsu's growing momentum in 3G and beyond, and confirms the technological leadership of Evolium™ multi-standard solutions (UMTS/GSM/EDGE) that permit the seamless and cost-effective introduction of new technologies such as HSDPA thanks to a software-only upgrade. Fujitsu, Alcatel's partner through their Evolium SAS joint venture, is already supplying 3G/W-CDMA equipment to NTT DoCoMo, Inc., the world's most advanced W-CDMA operator. Furthermore, DoCoMo already has a Fujitsu HSDPA demonstrator up and running in Japan.

Mr. Takanori Utano, Executive Vice President and Managing Director of Research and Development Division of NTT DoCoMo, Inc., declared: "We are very happy that a live HSDPA demonstration system in Europe has been made possible, thanks to our collaborative work with Fujitsu and with the local support of Alcatel."

"Positioned correctly HSDPA will further improve the success of 3G, delivering increased capability necessary to accommodate the market uptake of high-speed mobile applications such as content downloads," said Jason Chapman, Principal Analyst, Mobile Infrastructure at Gartner. "Gartner expects the first commercial launches of HSDPA to be driven by activity in Japanese market".

"We are proud to show our technical leadership through this HSDPA demonstration system," added Takashi Nakamura, Corporate Vice President of Fujitsu Limited. "This is a perfect example of Fujitsu's contribution to the development of advanced technology in the context of Evolium SAS, our successful joint venture with Alcatel."

Echoing this, Marc Rouanne, chief operating officer of Alcatel's mobile communication activities, stated: "DoCoMo is a prestigious reference, and the HSDPA demonstration system at Alcatel's 3GRC in France is yet another major step in bringing DoCoMo's leadership to the European market. It also leverages Alcatel's user-centric vision of the broadband mobile experience. Through Evolium SAS, its joint venture with Fujitsu, Alcatel is also committed to making the HSDPA technological breakthrough available to operators the world over."

In another recent collaboration, Alcatel and Fujitsu joined forces for the January 2004 opening of a 3G FOMA™ services showroom on Alcatel's premises in France. Alcatel also held the first 3G Indoor Coverage Forum in Tokyo in March 2004 with DoCoMo Engineering Inc., a100% subsidiary of NTT DoCoMo, Inc.